Industry Ministry boosts dairy sector through digitalisation and restructuring

Jakarta (ANTARA) - The Ministry of Industry (Kemenperin) continues to strengthen the national milk processing industry (IPS) ecosystem through the utilisation of digital technology and restructuring programmes for industrial machinery and equipment.

This step is being taken to support food security, improve public nutritional quality, and strengthen the independence of the domestic milk industry.

The Minister of Industry, Agus Gumiwang Kartagasmita, stated in Jakarta on Monday that the milk processing industry is a strategic manufacturing sector with high multiplier effects because it is directly linked to the smallholder livestock sector. However, the industry still faces challenges in meeting domestic raw material requirements.

“Currently, the production of Domestic Fresh Milk (SSDN) only meets about 20 per cent of the total industrial requirement. Therefore, strengthening mutually beneficial partnerships between industry, farmers, and cooperatives is the key to boosting national production capacity,” said Agus.

The Acting Director General of Agro-Industry at the Ministry of Industry, Putu Juli Ardika, explained that the milk processing industry is closely linked to the smallholder livestock sector, meaning the strengthening of the national milk industry must be carried out comprehensively, from increasing production to developing the capacity of business actors.

On the other hand, milk consumption levels among the Indonesian population remain relatively low, at approximately 17.7 litres per capita per year. This condition is seen as a significant opportunity for the future development of the milk processing industry.

“With government programmes oriented towards improving public nutritional quality, such as the Free Nutritious Meal (MBG) Programme, there is an opportunity to drive an increase in national milk consumption,” said Putu.

Nevertheless, according to Putu, the national milk processing industry still faces several challenges, including limited integration between the upstream and downstream sectors, the relatively small scale of smallholder livestock farming, the need to increase livestock productivity, and limitations in cold chain and logistics infrastructure.

To address these challenges, the Ministry of Industry continues to encourage the strengthening of partnerships between the milk processing industry and dairy farmers, the improvement of SSDN quality, and the application of digital technology at Milk Collection Points (TPS).

Additionally, the government is implementing the Food and Beverage Industry Machinery and/or Equipment Restructuring Programme through the Minister of Industry Regulation Number 40 of 2024.

The Director of Beverage, Tobacco, and Refreshment Industries at the Ministry of Industry, Merrijantij Punguan Pintaria, stated that the restructuring programme is aimed at increasing the productivity and quality of products within the national milk industry.

“Through this restructuring programme, the government provides a facility for partial cost replacement or reimbursement of up to 35 per cent for the purchase of new machinery and equipment. This facility can be utilised by the milk processing industry as well as cooperatives and farmer groups that act as industry partners to increase productivity and product quality,” Merri explained.

Furthermore, she noted that the commemoration of Nusantara Milk Day on Sunday (14/6) serves as an important momentum to strengthen collaboration between the government, farmers, cooperatives, the milk processing industry, academics, and the community in developing the national dairy sector.

Synergy between stakeholders is considered the key factor in increasing domestic milk production while simultaneously strengthening the competitiveness of the national milk processing industry.